Final answer:
Private corporations are juridical persons with succession rights and powers granted by law but cannot be formed under a special law or charter, which is exclusive to public corporations. They provide limited liability and can have an unlimited lifespan, with some large private corporations existing without publicly issued stock. The correct option are A.
Step-by-step explanation:
Private corporations have certain attributes that distinguish them from other types of business entities. Among these attributes are:
- It is created by operation of law as a juridical person.
- It has the right of succession, allowing it to continue beyond the lives of its shareholders.
- It has the powers, attributes, and properties expressly authorized by law or incident to its existence.
However, one attribute that is not applicable to private corporations is:
- It may be formed, organized, and existing under a special law or charter. This is typically a characteristic of public corporations, not private ones. Private corporations cannot be formed under a special law or charter; rather they are often formed under general incorporation laws.
A corporation is a business structure that offers limited liability to its owners and has the ability to raise capital more easily through the issuance of stocks and bonds.
It can hire professionals, is easy to transfer ownership, has an unlimited life as long as it continues to operate, and enjoys name recognition. While most private companies are small, there are notable large private corporations without publicly issued stock, like Cargill, Mars, and Bechtel. The correct option are A.